Correlation Between Cantaloupe and CLPS

Can any of the company-specific risk be diversified away by investing in both Cantaloupe and CLPS at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cantaloupe and CLPS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cantaloupe and CLPS Inc, you can compare the effects of market volatilities on Cantaloupe and CLPS and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cantaloupe with a short position of CLPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantaloupe and CLPS.

Diversification Opportunities for Cantaloupe and CLPS

-0.3

Correlation Coefficient

Cantaloupe  CLPS

Very good diversification

The 3 months correlation between Cantaloupe and CLPS is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Cantaloupe and CLPS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLPS Inc and Cantaloupe is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cantaloupe are associated (or correlated) with CLPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLPS Inc has no effect on the direction of Cantaloupe i.e., Cantaloupe and CLPS go up and down completely randomly.

Pair Corralation between Cantaloupe and CLPS

Given the investment horizon of 90 days Cantaloupe is expected to generate 1.03 times more return on investment than CLPS. However, Cantaloupe is 1.03 times more volatile than CLPS Inc. It trades about 0.19 of its potential returns per unit of risk. CLPS Inc is currently generating about 0.0 per unit of risk. If you would invest  801.00  in Cantaloupe on May 1, 2025 and sell it today you would earn a total of  307.00  from holding Cantaloupe or generate 38.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cantaloupe  vs.  CLPS Inc

Cantaloupe

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cantaloupe are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak essential indicators, Cantaloupe reported solid returns over the last few months and may actually be approaching a breakup point.

CLPS Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CLPS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CLPS is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cantaloupe and CLPS

The main advantage of trading using opposite Cantaloupe and CLPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantaloupe position performs unexpectedly, CLPS can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CLPS will offset losses from the drop in CLPS's long position.

The idea behind Cantaloupe and CLPS Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.